HOA Community Income/Expense Financial Statements
I recently discovered our Board is approving I/E Financial statements that are missing detailed itemizations for capital expenditures from our Reserve account. What is entered is a “lump Sum” amount instead that is accounting more moneys taken from out of the Reserve account by entering a debit and credit resulting in a total of zero. This started about a year and a half ago with this same board members approving this statement prepared by the currently property management where they used to itemize and enter the repairs like roofing and how much was spent on it. I checked and the same property management is doing the same to our Master HOA I/E reports. Also the property management office is closed too anyone being able to go to it, but they answer the phone and the manager shows up at meetings. I have emailed, stated the accounting concerns of transparency (last year 150,000.00 was taking out of our Reserve account on paper but no details). I don’t think I will get access to invoice documents either. What should I do to stop this. I am in another HOA and their I/E is spot on, thought I would remove the HOA name and give a copy to the board as an example so they know we know how it should be completed fully not partially as in just reporting general expenses.
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Darlene
You are allowed by law to view any reasonable request on financial records of the association including bank statements and all reports made to the board by the community manager. You are also allowed to request to view the accounting ledger of the association for all transactions in the month or quarter. Failure of the association to provide access to those records within 10 business days is a direct violation of the law that can be reported to ADRE in the dispute resolution process.
Dennis
Thank you that is helpful info. I just made a formal presentation to the board this last HOA meeting and gave them copies of a monthly Financial Report I/E and Balance sheet report too that was done correctly by a different property management co so they don’t even have to figure out what a complete and transparent one would look like. I also contacted the Master HOA and received a response from their property management co, which is the same as ours too. I also recorded the meeting and had a witness present too. It’s up to both the HOA and property management to resolve this reporting problem and insuring transparency, I am not going to have to beg to see invoices because they won’t provide a complete account of how the money has been spent, etc. The property management co has closed their office doors and if you call they will tell you you can’t come to the office, so requesting to see documentation is another problem. It’s in their court now because it’s looking like they don’t want members to see where the money has gone!